How much supplies did the company purchase during Year 2? Show your work. Income statement Year ended Dec. 31, Year 2RevenuesTotal sales revenuesS 1,560,000ExpensesCost of goods soldWages expenseSupplies expenseRent expenseDepreciation expenseInsurance expenseUtilities expenseInterest expenseTotal expenses668,000186,00046,000120,00020,000100,000165,00084,0001,389,000$ 171,000Net income Balance sheetsDec. 31, Year 2Dec. 31, Year 1AssetsCashAccounts receivableSuppliesPrepaid insurancePrepaid rentInventory280,000268,000180,000200,00020,00040,00030,00022,00060,00024,000300,000870,000270,000824,000480,000Total current assetsEquipmentAccumulated depreciationLand480,000(100,000)80,000(80,000)80,000Other non-current assetsTotal assets100,0001,430,000110,0001,414,000Liabilities and Stockholders' EquityAccounts payableWages payableInterest payableUtilities payable140,00032,00016,000170,00048,00018,00056,00062,000250,000160,000Total current liabilities292,000Notes payable160,000Other non-current liabilities40,000450,000600,000380,00066,000518,000600,000296,000Total liabilitiesContributed capitalRetained earningsTotal stockholders equityTotal liabilities + stockholders equity S980,0001,430,000896,0001,414,000

The cost of goods available for use is calculated as sum of beginning inventory and inventory…

Assets Cash 268,000 180,000 280,000 Accounts receivable 200,000 Supplies Prepaid insurance Prepaid rent Inventory Total current assets 20,000 40,000 30,000 22,000 60,000 24,000 270,000 824,000 480,000 300,000 870,000 480,000 Equipment Accumulated depreciation (100,000) 80,000 (80,000) 80,000 110,000 1,414,000 Land Other non-current assets 100,000 1,430,000 Total assets

Assets Cash 268,000 180,000 280,000 Accounts receivable 200,000 Supplies Prepaid insurance Prepaid rent Inventory Total current assets 20,000 40,000 30,000 22,000 60,000 24,000 270,000 824,000 480,000 300,000 870,000 480,000 Equipment Accumulated depreciation (100,000) 80,000 (80,000) 80,000 110,000 1,414,000 Land Other non-current assets 100,000 1,430,000 Total assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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